Silver futures plunge by Rs 8,817
Silver futures plunged by Rs 8,817 to Rs 2.42 lakh per kg on Thursday, tracking weak global trends after the US Federal Reserve’s latest policy signals strengthened the dollar and dampened investors’ appetite for precious metals.
On the Multi Commodity Exchange, the white metal for July delivery declined by Rs 8,817, or 3.5 per cent, to Rs 2,42,990 per kilogram in a business turnover of 11,188 lots. Analysts said the decline came after the US central bank kept interest rates unchanged, but indicated that the fight against inflation remains far from over, prompting traders to reassess expectations for future monetary policy easing. Silver prices in the domestic markets saw a sharper decline of more than 3 per cent on Thursday, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
“The downturn in precious metals can be attributed to a strengthening US dollar, as traders remain wary following a hawkish June Federal Reserve policy decision under new Chair Kevin Warsh,” he said. In the international markets, Comex silver futures for the July contract declined $2.36, or 3.34 per cent, to $68.40 per ounce in New York.
